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Release Date: 07/02/2001
Release Number: III-01-07-02-064-PHL
Contact Name: Gloria Della
Phone Number: 202.2198921
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Philadelphia, Pennsylvania - A Bucks County,
Pennsylvania, physician and his wife have been ordered to pay $324,382 in
restitution to the pension and profit sharing plans sponsored by Regional
Gastroenterological Associates (RGA) for conspiring to embezzle funds from
the pension plans. The restitution is part of criminal sentences handed
down by a federal court on June 25 and 26. |
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Dr. Andrew T. Fanelli Sr. also was sentenced on June 26
to 12 months in prison in a community detention center, followed by three
years of supervised release, starting August 16. |
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His wife, Angela Fanelli, was sentenced on June 25 to
12 months house arrest at the couple’s residence in Bucks County. She
will be permitted to leave her home to work or as otherwise authorized by
the probation office, and was also was sentenced to five years probation. |
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Besides the restitution, the couple were ordered to pay
a fine of $40,000, the maximum permitted under the sentencing guidelines
plus a special assessment of $50 each. |
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On December 14, 1998, the Fanellis pleaded guilty to
one count each of conspiring to unlawfully use funds from employee benefit
plans. The plans’ assets were unlawfully used for both business and
personal expenses. |
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Dr. Fanelli was a partner in the RGA medical practice,
which has offices in Langhorne and New Hope, Pennsylvania and Medford and
Mt. Laurel, New Jersey. His wife was RGA’s business manager. In December
1997, a federal grand jury indicted the couple on charges of making
unauthorized withdrawals of more than $1 million from the RGA pension
plans. More than 50 unauthorized withdrawals were made between September
1990 and December 1992. |
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Dr. Fanelli was one of two plan trustees. The plans,
which are governed by the Employee Retirement Income Security Act, provide
retirement benefits for the physicians, nurses and other employees of RGA.
Mrs. Fanelli was also a signatory on the plans’ accounts. |
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The case resulted from an investigation conducted by
the Internal Revenue Service Criminal Division and the Philadelphia
Regional Office of the U.S. Department of Labor’s Pension and Welfare
Benefits Administration and the Investigations Office of the
department’s Office of Inspector General. The government was represented
by Assistant United States Attorneys Robert Goldman and Jennifer Chun. |
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7775. |
